Guidelines regarding filing of auditor’s report in old format of Form No. 10CCAC, along with the return, in place of new format of Form No. 10CCAC for claiming deduction under section 80HHC

1. The provisions of section 80HHC require filing of Auditor’s Report in the prescribed Form No. 10CCAC along with return of income for claiming the deduction under the said section. This Form was revised by the Income-tax (Fifteenth Amendment) Rules, 1992, with effect from 1-4-1992. Instances have been brought to the notice of the Board that the benefit is, at times, denied in cases where the Auditor’s Report has been filed in the pre-revised format.

2. The matter has been examined in the CBDT and it is hereby clarified that the submission of Auditor’s Report in the old format of Form No. 10CCAC in place of the new format is a defect which can be corrected by filing the Auditor’s Report in the revised format during the course of assessment proceedings.

Circular : No. 1/2001, dated 17-1-2001.

JUDICIAL ANALYSIS

EXPLAINED IN : CIT v. God Granites [1999] 240 ITR 343 (Kar.), in following words :

“The subsequent circular [Circular No. 729, dated 1-11-1995] modifies the view of the Central Board of Direct Taxes [in Circular No. 693, dated 17-11-1994] about the same facts relating to the condition in which granite blocks are exported. There is no change in the procedure undertaken by the exporters of late which have necessitated the Central Board of Direct Taxes to issue the subsequent circular. The procedure remains the same. The Central Board of Direct Taxes being of the view that earlier it had taken a wrong view about the nature of export of granite blocks, on full appraisal of facts expressed a correct factual view in its latter circular. Clarificatory amendments in law are always retrospective unless the statute provides otherwise. In view of the subsequent circular the earlier circular ceases to exist and it cannot be said that the earlier circular shall apply to the assessment years till the issuance of the subsequent circular and that the subsequent circular would apply to the assessment years after it was issued. The Tribunal has recorded a firm finding of fact which we have recorded in the earlier part of the judgment regarding which Department has not claimed a question of law that the assessee was exporting ‘cut and polished’ granite blocks though not finally ‘cut and precisely polished’. As the assessee had processed the rough mineral by cutting and processing, it added a value to the marketable commodity thus entitling it to the deduction under section 80HHC.” (pp. 351, 352)

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“. . . The subsequent circular would be applicable to the assessment years previous to the issuance of this circular as well.” (p. 353)

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